CMB International: SenseTime's 2025 performance significantly exceeds expectations, with high growth in generative AI, maintaining a "Buy" rating

On March 24, SenseTime-W (0020.HK) released its full-year 2025 performance, and the next day, CMB International issued a research report commenting on the results. The company’s performance exceeded expectations, with institutions recognizing its strong momentum in generative AI and improved operational efficiency, maintaining a “Buy” rating. The day after the earnings release, SenseTime’s stock price reached a intraday high of HKD 2.02, up 5.76%, reflecting positive market feedback on its profitability turnaround and AI deployment.

The financial report shows that for fiscal year 2025, SenseTime’s total revenue grew 33% year-over-year to over HKD 5 billion, surpassing Bloomberg consensus estimates by 3%, setting a new record high. CMB International pointed out that the core driver of the outperformance was the strong performance of its generative AI business, with related revenue rapidly increasing during the period, becoming the company’s main growth engine. Meanwhile, the company’s operational quality improved across the board, with EBITDA reaching HKD 380 million in the second half—turning positive for the first time since listing; cash flow from operations also turned positive in the second half, marking a new level of capital efficiency and self-sustaining growth.

At the same time, SenseTime’s profit improvement exceeded market expectations. According to the financial report, the company’s loss in fiscal year 2025 narrowed by 58.6% year-over-year, significantly better than market forecasts. CMB International believes that SenseTime’s operating leverage continues to be released, steadily restoring profitability. The company’s gross profit margin remains healthy, and overall operational efficiency is on a continuous improvement path.

In terms of business layout, SenseTime’s computer vision business has entered a new growth phase, leveraging multimodal intelligent agent technology. The proportion of projects involving multimodal and intelligent agent capabilities has increased significantly. Both overseas market expansion and domestic demand support steady business growth. Innovation initiatives are progressing steadily; segments like autonomous driving have completed financing and operate independently, receiving high recognition from external capital. The computing power infrastructure continues to be solidified; as of March 2026, SenseTime’s large-scale deployment of computing power has increased to 40,400 PetaFLOPS, providing a strong foundation for technological iteration and scene implementation.

Additionally, the company’s commercialization efforts are advancing in tandem. In 2025, SenseTime achieved key breakthroughs in multimodal large models and spatial intelligence, with the NEO native architecture significantly reducing model training costs. Its native data analysis products, such as Little Raccoon and the creative AI Seko, have achieved large-scale user coverage, forming mature commercial closed loops in areas like general office, content creation, and finance. SenseTime plans to launch a new foundational model based on the second-generation NEO architecture in Q2 2026, further enhancing multimodal capabilities and model cost-performance ratio, opening broader commercial opportunities.

Based on the strong momentum of its generative AI business, CMB International has raised its revenue forecasts for FY2026-2027 by 3%-6%. The firm expects that in FY2026, total revenue will grow 27% year-over-year to HKD 6.39 billion, with the core growth driver being a 35% year-over-year increase in generative AI revenue. Going forward, the company will continue to deepen multimodal technology, optimize model cost efficiency, and seize the commercial opportunities of generative AI to promote high-quality, sustainable growth.

(Prepared by: Wang Lei)

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